As the market is not showing any sign of stability,i think the only way to save myself from this choppy market is to go for bigger time frame. I was analyzing some 30 minutes charts today & i found some good entry point .
Saturday, March 8, 2008
Not much happened
phophet screener didn't work properly today & couldn't find that many opportunities.
Summery -10
Summery -10
Friday, March 7, 2008
Thursday, March 6, 2008
Reasons why traders lose money
Over trading
Lack of knowledge & lack of experience
Trading without a plan
Not having enough capital
Over confidence
Lack of confidence
Emotional trading
Afraid to lose money
Trading with complex system
Relying on others
Not willing to take it as a business
No giving enough time to be a trader
Trying to be successful overnight- Running Losses
Wednesday, March 5, 2008
Tuesday, March 4, 2008
Monday, March 3, 2008
Thursday, February 28, 2008
Saturday, February 23, 2008
Friday, February 22, 2008
Choppy market chopped me
Probably I lost my confidence, like yesterday my stock management was very poor, I ignored my rules, as the market was choppy, and it made even worse impact on my trading.
Mistakes I made today:
1. I ignored my stop loss, got out with loss for no reason, where the stop loss was never touched.
2. In other trade I forgot to put stop loss, instead of losing .12c (which I was willing to lose) I lost .26c.
3. I over traded.
4. My exits were really bad (left $2.50 on the table )
Summery -220
Thursday, February 21, 2008
Wednesday, February 20, 2008
Another ordinary day
I don’t know for some reason ONXX wasn’t in my usual watch list & my second screener didn’t work today, otherwise my P&L would be different. I am not proud of my trade that I did today, wasn’t really good setup .
Summery +173
Tuesday, February 19, 2008
Most of the unsuccessful traders make the same Common mistakes
I was reading some of the horrible stories of day traders how they lost every thing in the market; some of the stories are really painful to read. As I was reading their disasters, i wrote down some of the mistakes they made.
Most of the unsuccessful traders make the same Common mistakes:
1 .They like to use complex system, lots of indicators, where they are telling the same old story (price & volume). As I learned so far simple system is the best.
2. They spend more time in trading, then learning, we already know successful traders spend more time improving themselves & their systems then trading, they are very selective.
3. They lost their capital, before the learning process. To become an expert it takes years of right experience.
4. They think but they don’t see, they think market will go up or down so they buy or sell, but they don’t see what the chart is trying to show them.
5. They want to control the market, which is impossible.
6.The have gambling problem.
7. They don’t know when to stop.
8. They think they know every thing, they don’t take advice.
9. When they go through bad time, they change their system, time frame & market.
10.They try to get rich over night.
11. They are very risk adverse people, so when they lose, they can’t tolerate it, they start impulse trading & end up losing more.
12. They never learn their lesson.
Monday, February 18, 2008
How day traders can use support & resistance in day trading?
Support & resistance are very important tools for the day traders. I discovered as a day trader supply and demand are key causes of markets movement. When there is a huge demand for a stock, the stock will rally and if a significant number of share holders want to sell a particular stock, there will be sharp fall. But when the price has really difficult time to move upwards or downwards, we called it support or resistance. In support & resistance level supply & demand are almost equal.
How day traders can use support & resistance in day trading?
1.In an uptrend, trader should buy at or above support level, never below support.
2.In a down trend, trader should sell at or below resistance level, never above resistance.
3.If traders already in an up trend should be prepared to sell at resistance, price can fall sharply at resistance.
4 .If traders already in short position should be ready to take profit when price approach support level.
Sunday, February 17, 2008
Saturday, February 16, 2008
Not a bad day
Not a bad day but could have been better, I have to work on that. I was in the right stock but didn’t do the right thing, as usual my exit was poor. My next assignment is how to improve my exits.
Summery +478
Summery +478
Friday, February 15, 2008
Technical analysis & day trading
Technical analysis is a study of price & volume action of stocks or markets, by using different kinds of analytical tools (indicators) or simply drawing a trend line or support and resistance level. Trader use charts as a basic element to analyze securities. Day traders rely on technical analysis rather then fundamental analysis. As I became more interested in day trading, I found out that it was fascinating to predict the next move of a stock .The only way to predict the future move is to analyze their past move.
Most popular technical indicators:
1. Moving average (MA)
2. Moving average convergence divergence ( MACD)
3. Relitive strength index (RSI)
4. Stochastics
5. Bollinger bands
6. Commodity channel index (CCI)
7. Money flow
8. Parabolic SAR
9. Price Oscillator
10. Momentum
11. Directional movement index (DMI)
12. Price oscillator
13. Average true range
14. Donchian channel
15. Accumulation/distribution
Most popular technical indicators:
1. Moving average (MA)
2. Moving average convergence divergence ( MACD)
3. Relitive strength index (RSI)
4. Stochastics
5. Bollinger bands
6. Commodity channel index (CCI)
7. Money flow
8. Parabolic SAR
9. Price Oscillator
10. Momentum
11. Directional movement index (DMI)
12. Price oscillator
13. Average true range
14. Donchian channel
15. Accumulation/distribution
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